dents are working for public or nonprofit organizations other than the institution itself;

(c) provide that in the selection of students for employment under such work-study program preference shall be given to students from low-income families and that employment under such work-study program shall be furnished only to a student who (1) is in need of the earnings from such employment in order to pursue a course of study at such institution, (2) is capable, in the opinion of the institution, of maintaining good standing in such course of study while employed under the program covered by the agreement, and (3) has been accepted for enrollment as a full-time student at the institution or, in the case of a student already enrolled in and attending the institution, is in good standing and in full-time attendance there either as an undergraduate, graduate, or professional student;

(d) provide that no student shall be employed under such work-study program for more than fifteen hours in any week in which classes in which he is enrolled are in session;

(e) provide that in each fiscal year during which the agreement remains in effect, the institution shall expend (from sources other than payments under this part) for the employment of its students (whether or not in employment eligible for assistance under this part) an amount that is not less than its average annual expenditure for such employment during the three fiscal years preceding the fiscal year in which the agreement is entered into;

(f) provide that the Federal share of the compensation of students employed in the work-study program in accordance with the agreement will not exceed 90 per centum of such compensation for work performed during the period ending three years after the date of enactment of this Act, and 75 per centum thereafter;

(g) include provisions designed to make employment under such work-study program, or equivalent employment offered or arranged for by the institution, reasonably available (to the extent of available funds) to all eligible students in the institution in need thereof; and

(h) include such other provisions as the Commissioner shall deem necessary or appropriate to carry out the purposes of this part.

SOURCES OF MATCHING FUNDS

SEC. 125. Nothing in this part shall be construed as restricting the source (other than this part) from which the institution may pay its share of the compensation of a student employed under a work-study program covered by an agreement under this part, and such share may be paid to such student in the form of services and equipment (including tuition, room, board, and books) furnished by such institution.

EQUITABLE DISTRIBUTION OF ASSISTANCE

SEC. 126. The Commissioner shall establish criteria designed to approve such distribution of assistance under this part among institutions of higher education within a State as will most effectively carry out the purposes of this Act.

PART D-SPECIAL IMPACT PROGRAMS

ESTABLISHMENT OF PROGRAMS

SEC. 131. (a) The purpose of this part is to establish special programs which (1) are directed to the solution of the critical problems existing in particular communities and neighborhoods (defined without regard to political or other subdivisions or boundaries) within those urban areas of the Nation having, in the judgment of the Director, especially large concentrations of low-income persons; (2) are of sufficient size and scope to have an appreciable impact in such communities and neighborhoods in arresting tendencies toward dependency, chronic unemployment, and rising community tensions; and (3) where feasible and appropriate, are part of a citywide plan for the reorganization of local or State agencies in order to coordinate effectively all relevant programs of social development.

(b) In order to carry out the purposes of this part, the Director is authorized to make grants to public or private nonprofit organizations, or to enter into contracts with other private organizations, for the payment of all or part of the cost of programs described in sections 205 (d) and (e) of this Act. The Director shall assure that the work training and employment opportunities created under these special programs are filled by the residents of the communities or neighborhoods served, and that the activities pursued are carried out in the communities and neighborhoods described in subsection (a). For the purposes of this section, the Director may include youths aged sixteen to twenty-one who are unemployed, underemployed, or below the poverty level as established for the programs described in sections 205 (d) and (e).

(c) The Director shall establish such criteria, and impose such conditions, as may be necessary or appropriate to assure that no program assistance under this part will result in the displacement of employed workers or impair existing contracts for services and to assure that the rates of pay and other conditions of employment will be appropriate and reasonable in the light of such factors as the type of work performed, geographical region, and proficiency of the employee. (d) In carrying out the provisions of this part, the Director shall establish such procedures or impose such requirements as may be necessary or appropriate to assure maximum coordination with community action programs approved pursuant to part A of title II of this Act.

FEDERAL SHARE OF PROGRAM COSTS

SEC. 132. Federal grants to any program carried out pursuant to this part shall not exceed 90 per centum of the cost of such program, including costs of administration, unless the Director determines, pursuant to regulations adopted and promulgated by him establishing objective criteria for such determinations, that assistance in excess of such percentages is required in furtherance of the purposes of this part. Non-Federal contributions may be in cash or in kind, fairly evaluated, including but not limited to plant, equipment, and services: Provided, That where capital investment is required under a contract with a private organization (other than a nonprofit organization), the Federal share thereof shall not exceed 90 per centum of such capital investment and the non-Federal share shall be as defined above.

PART E-DURATION OF PROGRAM

SEC. 141. The Director shall carry out the programs for which he is responsible under this title during the fiscal year ending June 30, 1967, and the three succeeding fiscal years. For each such fiscal year only such sums may be appropriated as the Congress may authorize by law.

TITLE II-URBAN AND RURAL COMMUNITY ACTION PROGRAMS

PART A-GENERAL COMMUNITY ACTION PROGRAMS

STATEMENT OF PURPOSE

SEC. 201. The purpose of this part is to provide stimulation and incentive for urban rural communities to mobilize their resources to combat poverty through community action programs.

COMMUNITY ACTION PROGRAMS

SEC. 202. (a) The term "community action program" means a program

(1) which mobilizes and utilizes in an attack on poverty resources, public or private, of any urban or rural, or combined urban and rural, geographical area (referred to in this part as a "community"), including but not limited to a State, metropolitan area, county, city, town, multicity unit, or multicounty unit or any neighborhood or other area (irrespective of boundaries or political subdivisions) which is sufficiently homogenous in character to be an appropriate area for an attack on poverty under this part;

(2) which provides services, assistance, and other activities of sufficient scope and size to give promise of progress toward elimination of poverty or a cause or causes of poverty through developing employment opportunities, improving human performance, motivation, and productivity, or bettering the conditions under which people live, learn, and work;

(3) which is developed, conducted, and administered with the maximum feasible participation of residents of the areas and members of the groups served;

(4) which is conducted, administered, or coordinated by a public or private nonprofit agency (other than a political party), or a combination thereof; and

(5) which includes provision for reasonable access of the public to information including, but not limited to, reasonable opportunity for public hearings at the request of appropriate local community groups, and reasonable public access to books and records of the agency or agencies engaged in the development, conduct, and administration of the program, in accordance with procedures approved by the Director.

(b) The Director is authorized to prescribe such additional criteria for programs carried on under this part as he shall deem appropriate. Such criteria shall include requirements to assure (1) that each agency

responsible for a community action program is qualified to administer such program and the funds granted to it efficiently, effectively, and in a manner fully consistent with the provisions and purposes of this part, having due regard for the size and complexity of such program and the number of persons and size of the area served; (2) that each such agency is subject to evaluation of program progress and regular or periodic audits and that the results or findings of such evaluations and audits are considered by the agency as well as by the Director in connection with proposals or applications for the renewal, expansion, or modification of any such program; (3) that each such agency maintains records and internal controls needed to achieve and document compliance with all legal requirements and that all records bearing exclusively on grants made under this part are available to the General Accounting Office; (4) that each such program is carried on in accordance with standards and policies, including rules governing the conduct of officers and employees, to preclude the use of program funds, the provision of services, or the employment or assignment of personnel in a manner supporting, or resulting in an identification of such program with, any partisan political activity or any activity designed to further the election or defeat of any candidate for public office; and (5) that the personnel of each such agency are selected, employed, promoted, and compensated in accordance with standards prescribed by the Director, or personnel plans approved by him, as promoting efficiency and the effective use of funds.

(c) (1) The Director shall not approve, or continue to fund after March 1, 1967, a community action program which is conducted, administered, or coordinated by a board which contains representatives of various geographical areas in the community unless such representatives are required to live in the area they represent.

(2) The Director shall not approve, or continue to fund after March 1, 1967, a community action program which is conducted, administered, or coordinated by a board on which representatives of the poor do not comprise at least one-third of the membership.

(3) The representatives of the poor shall be selected by the residents in areas of concentration of poverty, with special emphasis on participation by the residents of the area who are poor.

(4) In communities where substantial numbers of the poor reside outside of areas of concentration of poverty, provision shall be made for selection of representatives of such poor through a process, such as neighborhood meetings, in which the poor participate to the greatest possible degree.

(d) The Director shall require community action agencies to establish procedures under which representative groups of the poor including but not limited to minority groups, the elderly, and the rural population, which feel themselves inadequately represented on their community action agency policy board, may petition for adequate representation on such board.

ALLOTMENTS TO STATES

SEC. 203. (a) From the sums appropriated to carry out this title for a fiscal year, the Director shall reserve the amount needed for carrying out sections 204 and 205. Not to exceed 2 per centum of the

amount so reserved shall be allotted by the Director among Puerto Rico, Guam, American Samoa, the Trust Territory of the Pacific Islands, and the Virgin Islands according to their respective needs for assistance under this part. Twenty per centum of the amount so reserved shall be allotted among the States as the Director shall determine. The remainder of the sums so reserved shall be allotted among the States as provided in subsection (b).

(b) of the sums being allotted under this subsection

(1) One-third shall be allotted by the Director among the States so that the allotment to each State under this clause will be an amount which bears the same ratio to such one-third as the number of public assistance recipients in such State (as determined on the basis of the latest appropriate data) bears to the total number of public assistance recipients in all the States (as so determined);

(2) one-third shall be allotted by him among the States so that the allotment to each State under this clause will be an amount which bears the same ratio to such one-third as the annual average number of persons unemployed in such State (as determined on the basis of the latest appropriate data) bears to the annual average number of persons unemployed in all the States (as so determined); and

(3) the remaining one-third shall be allotted by him among the States so that the allotment to each State under this clause will be an amount which bears the same ratio to such one-third as the number of related children under 18 years of age living in families with incomes of less than $1,000 in such State bears to the number of related children under 18 years of age living in families with incomes of less than $1,000 in all the States.

(c) The portion of any State's allotment under subsection (a) for a fiscal year which the Director determines will not be required for such fiscal year for carrying out this part shall be available for reallotment from time to time, on such dates during such year as the Director may fix, to other States in proportion to their original allotments for such year, but with such proportionate amount for any of such other States being reduced to the extent it exceeds the sum which the Director estimates such State needs and will be able to use for such year for carrying out this part; and the total of such reductions shall be similarly reallotted among the States whose proportionate amounts are not so reduced. Any amount reallotted to a State under this subsection during a year shall be deemed part of its allotment under subsection (a) for such year.

(d) For the purposes of this section, the term "State" does not include Puerto Rico, Guam, American Samoa, the Trust Territory of the Pacific Islands, and the Virgin Islands.

FINANCIAL ASSISTANCE FOR DEVELOPMENT OF COMMUNITY ACTION

PROGRAMS

SEC. 204. The Director is authorized to make grants to, or to contract with, appropriate public or private nonprofit agencies, or combinations thereof, to pay part or all of the costs of development of community action programs.

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